Nirma Group is preparing to enter the hospitality sector as part of a broader diversification strategy, according to people familiar with the matter. The Ahmedabad-based conglomerate, with operations spanning detergents, chemicals, cement and healthcare, has applied for environmental clearance to develop a five-star hotel targeting the upper-upscale segment.

The group, which has an estimated turnover of around Rs 122.07 billion, is planning a 555-room hotel along the Sarkhej–Gandhinagar Highway, one of Ahmedabad’s fastest-growing commercial corridors. Sources said the proposed project is expected to cater to rising demand from corporate travellers and large-scale events.

Nirma Group has also initiated discussions with several global and domestic hotel operators, including Indian Hotels Company Ltd, Hyatt Hotels and Marriott International. However, people aware of the talks said that no operating agreement has been finalised so far.

The hotel is expected to become operational ahead of the 2030 Commonwealth Games, positioning it to benefit from increased demand for premium accommodation linked to international sporting events as well as sustained growth in business travel. An email sent to a Nirma Group official seeking comment did not elicit a response at the time of publication.

Commenting on the sector’s outlook, Nandivardhan Jain, founder and chief executive of hotel investment and branded residences advisory firm NOESIS, said demand conditions in India’s hospitality market have deepened significantly compared with previous years.